Ta planning on sale of land
This query is : Resolved
24 October 2016
Dear sir
My grand father has a land in urban area bought on 1960 which is cost amounting to Rs 5000.00 .Now he is alive and we are planning to sell the property sell value as municipal value is Rs 2.4 Cr.we are seven person blood relatives (my grand mother, father ,mother my two uncles and me) among whom the amount will be shared equally.
So now my concern are as follows.
1. How to reduce the tax liability as it is in the name of my grand father.
2.Can the tax liability be reduced by executing a gift deed in favour of all relatives by grand father or can it be reduced by creating huge.
3.if the above gift deed is possible then can we deposit the each share capital gain amount in capital gain scheme in all respective names for claiming exemption
4.if capital gain scheme is possible , then whether we have to produce proof for purchase /construction of land /property for withdrawing the amount from capital gain scheme or we can normally produce a declaration that we are withdrawing the amount for purchase/construction .
With regards
Sanjay
My grand father has a land in urban area bought on 1960 which is cost amounting to Rs 5000.00 .Now he is alive and we are planning to sell the property sell value as municipal value is Rs 2.4 Cr.we are seven person blood relatives (my grand mother, father ,mother my two uncles and me) among whom the amount will be shared equally.
So now my concern are as follows.
1. How to reduce the tax liability as it is in the name of my grand father.
2.Can the tax liability be reduced by executing a gift deed in favour of all relatives by grand father or can it be reduced by creating huge.
3.if the above gift deed is possible then can we deposit the each share capital gain amount in capital gain scheme in all respective names for claiming exemption
4.if capital gain scheme is possible , then whether we have to produce proof for purchase /construction of land /property for withdrawing the amount from capital gain scheme or we can normally produce a declaration that we are withdrawing the amount for purchase/construction .
With regards
Sanjay
24 October 2016
1 Execute gift deed in favour of all relatives which will reduce tax.
2 Capital gain can be deposited by each person separately.
3 No proof is required declaration is enough.
2 Capital gain can be deposited by each person separately.
3 No proof is required declaration is enough.
24 October 2016
Dear Settharaman Sir, Can the assessees also show some cost of improvement every year which they might have reasonably spent to increase the cost value which will reduce the tax liability?
24 October 2016
They should have documentary evidence for it.
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24 October 2016
Thank you very much sir.
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